Show summary Hide summary
About 60,000 Microsoft employees have been offered voluntary buyouts and must decide whether to accept by early December, Business Insider reported. The offers, which vary by level, location, and tenure, would let departing staff leave at the end of the year in exchange for a cash payout plus continued benefits in some cases.
Business Insider reviewed example offers for U.S. employees: those at level 64 and below were offered one week of base pay for every six months of service, while employees at levels 65 to 67 were offered two weeks of base pay for every six months. The offers reviewed also included continued stock vesting and health-insurance coverage, the outlet said.
How to calculate the true value
Two HR experts interviewed by Business Insider said the headline number is only part of the decision and urged employees to check the full financial and benefits picture before signing.
“The number is important,” Marjo Miles, founder and principal consultant at The Ember Effect, told Business Insider. “But really, there’s more than that number.” Miles recommended confirming in writing what will happen to stock awards, paid time off, outstanding bonuses or commissions, and the length and cost of health coverage after departure. She also advised employees to calculate how long the payout would cover household expenses after taxes and deductions.
Deborah Saneman, CEO of workforce management and HR technology company Würk, told Business Insider employees should specifically price replacement health insurance — how long any company-funded coverage lasts, what monthly premiums would be, and whether the employer contributes to the cost — and verify which shares will vest after exit. “The headline number is only part of the picture, so get the details in writing,” she said.
Plan for a longer job search
Both experts urged workers to assume the job search will take longer than expected. Miles told Business Insider: “Whatever somebody thinks their job search is going to take, double it in your mind and plan for that.” She recommended using the decision window to explore options and to start networking and applying for roles so employees have a clearer sense of prospects before committing to leaving.
Saneman suggested asking whether the company offers career coaching, outplacement services, interview preparation, or retraining as part of the package. “A payout covers your bills, but help with the search itself can shorten the runway,” she said to Business Insider.
Think through the alternative: staying
Turning down a buyout does not guarantee long-term security, Miles cautioned, but neither does it necessarily mean an immediate layoff. She told Business Insider that companies can meet savings goals in many ways, such as leaving roles unfilled or reorganizing work, and advised employees to ask how work from departing colleagues would be redistributed and what support would be available.
Saneman emphasized that a buyout gives workers control and time to plan. “The benefit of a buyout is that it’s on your own terms and gives you time to plan your next steps,” she said to Business Insider. “A layoff may not.”
Questions to ask HR before deciding
Business Insider asked the two experts which questions employees should raise before accepting a buyout. Their key recommendations:
- Would I be eligible for rehiring? Miles noted that Microsoft is large and professional paths may cross again, so rehiring policies are worth knowing.
- Will the payout be a lump sum or continued salary? The format affects timing, taxes, and how benefits such as health insurance are administered.
- What happens to my bonus or commission? Confirm whether any compensation due after the exit date will be paid and get that in writing from HR.
- What help will I get finding another job? Ask whether the company provides career coaching, interview prep, outplacement, or retraining options.
The information and quotes in this article are drawn from Business Insider’s reporting and interviews with the HR experts cited.
